3 AI Data Center Power Stocks to Watch in July 2026

According to a report from 24/7 Wall St., hyperscaler AI capital spending has been raised to $750 billion in 2026, up from $670 billion, and is set to cross $1 trillion in 2027. This capital buys far more than GPUs: it includes switchgear, transformers, gas turbines, and prime-power gensets that turn electrons into trained models. The Department of Energy already projects data centers will consume up to 9% of U.S. electricity by 2030, creating massive demand for power generation and distribution equipment.

Details

The three stocks highlighted in the report include:

• Caterpillar Inc. (CAT): A leading manufacturer of generators and gas turbines used in data centers.
• Two other companies (names not specified in the original summary).

Context

This trend reflects a major shift in capital spending priorities for big tech companies, with energy becoming a critical component in expanding AI capabilities. As demand for reliable and clean power grows, companies like Caterpillar are expected to benefit.

What It Means for Investors

Investors interested in the AI sector may look beyond chip makers to the power infrastructure that supports them. However, risks such as regulatory changes and raw material costs should be considered.